15A 10-year annuity of twenty $9,000 semiannual payments will begin 11 years fromwith the first payment coming 11.5 years from now.5.88pointsa. If the discount rate is 11 percent compounded monthly, what is the value of thisannuity 7 years from now?SkippedeBookPrinterences68,678.46$106,424.02$ 76,625.86S15,305.94b. What is the current value of the annuity?

a. Calculation of Value of Annuity 7 years from now: To calculate the value of annuity 7 years from…

Answered: 15 A 10-year annuity of twenty $9,000…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 5 Katharine Bartle will receive an annuity of $4,090.00 every month for 23 years. How much is this cash flow worth to them today if the payments begin today? Assume a discount rate of 5.00%. Oa. $55,398.13 b. $2,119,880.47 c. $672,837.73 Od. $170,156.69
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Amount of annuity expected $900 Payment Annually Time 4 years Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Opening balance ces Interest Annuity Closing balance Year 1 Year 2 Year 3 Year 4 3,118.59
What amount must be invested to receive $47000 for 17 years, if the first $47000 is received today and the rate is 10% ? Periods Present Value of Ordinary Annuity at 10% 16 7.82371 17 8.02155 18 8.20141
Future Value of an Annuity What is the future value of a $1,500 annuity payment over 8 years if the interest rates are 7 percent? Multiple Choice $15,389.70 $12,840.00 $2,577.28 О $13,384.21
13Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers: • a 5-year fixed rate of 6.05%, compounded monthly. • a 3-year fixed rate of 5.75%, compounded monthly. If you choose to repay the borrowing in equal installments monthly over a 20 years, what would be the difference between your monthly payments at the two different APRs? a. $89.32 b. $68.94 c. $26.98 d. $154.58 14You expect that the interest rate will decrease in the near future, therefore you eventually choose the 3-year fixed rate. Then, what will be your mortgage balance after 3 years? a. $321,598.59 b. $452,321.21 c. $365,056.12 d. $379,325.89 15Three years passed, it's time to renew your mortgage. Upon your renewal, your bank is now offering a new 3-year fixed rate of 4.5%, what would be your monthly repayment amount after renewal? a. 2825.32 b. 2598.54 c. 1965.21 d. 2563.60
QUESTION SIX a) Find the Future Value of an annuity for$1000 paid at the end of each year for 3 years assuming interest is compounded annually at 7%? b) Julie Miller will receive the set of cash flows below. What is the Present Value at a discount rate of 10%. Year one 500, year two 500, year three 300, year four 300 and year five 150. c) Perpetuity has no time limit. The present value of $100 perpetuity discounted at 15% is?
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Question 4 What's the present value of a $830 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Futre value
Arun wants to have $625 at the end of every year for 25 years the bank pays 9% interest compounded annually Arun calculates at the present value of the ordinary annuity is $6139.11 what would be the present value of payments were to be received at the beginning of every period Rather than the end A $6139.11 B $6205.61 C $6691.63 D $6851.05
HCCumuialeu Valuc 13 TLLU,UUU. 10. How much is the periodic payment payable monthly of a general ordinary annuity whose present value is P400,000.00 for 15 years if money is worth 8.1% compounded annually?

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